The change in trends between generations is leading to challenges for coverage providers.
The results of new research have found that Millennials and the youngest of the Gen X generation have experienced substantial delays in buying homes, and this trend is affecting homeowners insurance companies.
This trend has been made only worse by the trends in out-of-state migration from those same generations.
Those trends toward migrations out of state are driven in part by the COVID-19 pandemic. That behavior is posing a risk to homeowners insurance companies. These, among other trends, were placed in the spotlight at TransUnion’s annual Insurance Summit, which brought together leaders from some of the leading international insurers.
Data, analysis and findings from a TransUnion survey of 2,791 consumers were outlined at the summit. The survey was conducted in February and March 2022. The focus of the research was on near-term coverage needs of consumers. It examined those needs across several lines of business and offered a clearer understanding of the types of support and communication expected by those consumers from their insurers.
Millennials and parts of other generations are late to the housing market, changing homeowners insurance trends.
“Millennials and even parts of Gen Z are coming to the housing market for the first time later in life,” said TransUnion’s executive vice president and head of insurance business Mark McElroy. “They’re taking a different approach to engaging with their insurance providers and expecting services and counsel beyond basic coverage of their homes.”
As Millennials start to enter into their first-time home purchases, the gaps that have been forming in coverage needs have started to narrow. By the end of 2021, people in that generation comprised over half of the home purchases. As they reach traditional adulthood milestones, many believe that they are going to use and engage with insurers differently than was the case with previous generations.
The TransUnion data analysis determined that consumers in that generation expect that they will be able to conduct their homeowners insurance policy and price comparisons online. That said the primary direct communication channel for purchases and claims is a conversation over the phone.